SK D&D carries out ethical management by establishing ethical regulations in order to fulfill its economic, legal, ethical, and philanthropic responsibilities, guided by a sense of social responsibility. Every year, we conduct investigations to diagnose and enhance the level of ethical management, and we continuously enhance the level of ethical management according to the results. We strive to become a company trusted by all stakeholders by operating ethical reporting channels, conducting ethical management training, and ethical practice workshops to raise employees’ awareness of ethics and compliance, and spreading a culture of eradicating unethical behavior and unfair transactions.
Ethical Management Implementation System
We have enacted and disclosed the code of ethics in order to fulfill the company’s social responsibilities which serves as a guiding principle for decision-making and behavioral judgement across all management activities. We provide support for employees to practice integrity and fair business practices, presenting specific criteria for judgment and behavior. Furthermore, all members of the company signed the Ethical Management Practice Pledge, and the company is practicing ethical management by establishing the basis for internal audit and compliance through the Audit Part, an ethical management promotion organization.
Key Details of Code of Conduct
Process at Ethical Management Promotion Organization
Internationalization of Ethical Management
Ethical Practice Workshops·Mailing
We operate ethical management practice workshops every year in order to raise ethical awareness and improve ethical competency of all employees. At the ethical management practice workshop, a hierarchical and organizational discussion among members is conducted on the topic of decision making regarding ethical conflicts. In 2022, a total of 21 separate workshop sessions were held for employees and executives, with 96.2% of the target employees participating in the workshops. In addition, mails regarding ethical practices are distributed frequently, and we are also promoting awareness-raising activities such as banning receiving gifts from business partners.
Ethical Management Training
We strive to establish an ethical corporate culture by providing ethics and anti-corruption training programs for all employees. In addition to statutory training to improve awareness of the disabled, workplace bullying prevention training, and sexual harassment prevention training, the curriculum includes how the SK Ethics Management Reporting System is used, cases regarding the corruption and worng-doing in the company are introduced. We are striving to internalize ethical management among employees. Ethical management training was provided online in 2022, with a total of 233 employees completing the training.
Ethical Risk Monitoring
We are inspecting the self-regulation system and carrying out annual risk checks in advance through the risk detection system in major business areas including HR, Finance & accounting, Purchasing, and Investment. In 2022, inspections were completed on 71 detailed items from a total of 6 areas, preventing and removing potential risks in advance and reformed the ethical risk management system.
We conduct ethical surveys to assess and improve our ethical management performance. The survey has been conducted every year to all employees and business partners since its first introduction in 2015, assessing degree of ethical management, ethical culture and system, and types of unethical behavior. 98.4% of employees participated in the 2022 employee ethical management practice survey. Based on the survey results, we are carrying out activities to supplement and improve the ethical management system. In addition, the ‘Supplier Ethical Management Survey’ was conducted for 150 suppliers. Through this survey, whether or not employees in the procurement department violated ethical management during the transaction was identified.
Response Rate for Ethical Management Survey (2023)
Whistleblowing Channel and Handling Process
We receive whistleblowing reports for ethical issues through the channel operated at the SK Group level, handling reports based on detailed rules for handling ethical consultation and whistleblowing. This channel serves to receive reports on unethical or unfair trade practices on the part of our employees. We keep the identity of whistleblowers and their reports strictly confidential to protect them from being disadvantaged in any form. This channel is made more accessible by allowing anonymous reporting, and we allow such reports to be made on the website and/or over the phone.
Whistleblowing Channel Operation Process
- * Unit : No. of cases
Non-Compliance of Internal Regulations and Follow-up Measures
|No. of discriminations and harassments
|No. of cases
- * In 2019, disciplinary measures were taken through the HR Committee for 1 case of violation
Compliance Organization and System
We systematically manage various legal risks that may occur in business activities and operations by appointing compliance officers and organizing compliance (RM Part) in order to implement corporate ethics by complying with the law and carrying out business in a transparent manner. Compliance officers meeting legal qualifications are appointed in order to check compliance with the compliance control standards and ensure that the management and employees comply with the prescribed laws and regulations to monitor proper performance of corporate management, also reporting to the board of directors.
RM(Risk Management) Part
- Compliance support through inspection of internal processes
- Improvements of governance
- Risk management on businesses and investments
- Review transactions among affiliates
The Audit Committee consists of members qualified according to relevant laws and Articles of Incorporation. All members are outside directors who have no disqualifications under the Commercial Code and are guaranteed independence, and the Chairperson of the Audit Committee is an appointed expert in accounting and finance. We hold regular forums for the Audit Committee as well as providing relevant programs such as training on the internal accounting control systems in order to strengthen expertise. In addition, we operate an audit committee support organization managing auditing in the internal accounting management part, conducting inspection and training on compliance with the External Audit Act and the internal accounting management system. We maintain ongoing communication with external auditors regarding the planned scope and timing of the audits, as well as the findings from these audits.
Composition of the Audit Committee
|Legally certified accounting or finance expert
Internal Accounting Control System
We have established an internal accounting control system. The Audit Committee’s chair assesses the operational status of the system and reports the results to the board. The CEO is responsible for reviewing the effectiveness of the internal control system and managing and operating the system while reporting the results to the general meeting of shareholders, the board and the Audit Committee. Detailed regulations and operational results are disclosed on the electronic disclosure system (DART) through our business reports and internal accounting control system reports.
Number of Reports
|Number of assessed items
|Transaction level controls
|Entity level controls
|Information technology general control
- * In case of two cases excluded from the number of measures taken, they are the two deficiencies discovered at the end of term in 2022. Corrective actions were taken accurately on the financial statement, and measures are being taken after establishing improvement plans in 2023.